24% of employees say they made a bad decision about debt during the pandemic, according to a new study from Aviva.

Its research has examined experiences of personal, workplace and financial wellbeing since early 2020.

This figure rises to more than half (51%) of those aged 18-to-24, dubbed ‘Gen-Z’. 36% of ‘Gen-Y’ aged 25-to-39 also feel they made a bad debt decision since Covid-19 struck.

Aviva’s report – Thriving in the Age of Ambiguity: building resilience for the new realities of work, reveals how people’s relationship with finances, work and hopes for the future have evolved as they adapt to the ambiguity from the last 12 to 18 months. The research reveals that personality plays a key role in determining preferences, behaviours, and outcomes – at home and work.

29% of respondents disclosed they have had to borrow to replace lost income, while 30% stated they are concerned their money will run out.

Meanwhile, 39% agree their current financial situation negatively impacts their mental health, while 60% feel their finances control their lives.

However, the report also reveals those who suffer from poor financial wellbeing do not necessarily think of themselves as bad with money – challenging the stereotype that money worries arise from disorganisation or knowledge gaps, Aviva said.

68% of employees with poor financial wellbeing think they are organised with their money, and 64% always try to minimise debt. The research shows financial factors only account for 51% of someone’s sense of financial wellbeing; the rest is driven by other factors, including personality type.

Aviva’s study shows personality type has a huge influence on individual behaviour, mindset, and personal outcomes. Employees who are thriving in adversity tend to be naturally more emotionally resilient and optimistic. Those with less natural emotional resilience regularly experience negative emotions, low financial and mental wellbeing, along with feelings of anxiety and struggle with debt.

However, employees of all types need personalised support. By accounting for diverse personalities in the modern workforce, Aviva argues UK businesses can better understand the likely impact when people are put in different situations or asked to make certain decisions to help them perform to their potential.

Laura Stewart-Smith, head of workplace savings and retirement at Aviva, said: “The Covid-19 experience has fundamentally altered our relationship with money, work and health. While some employees have been able to boost their financial wellbeing by saving more, with large swathes of the economy closed, others have found their income reduced and are facing larger debts or having to provide support for dependent family members.

“Our report shows many trends which have been gathering pace in recent years have now reached an inflection point, as new preferences emerge to shape the way we work, feel, think and plan ahead. Financial education in the workplace is nothing new, but now more than ever, there is a fundamental need for employers to provide tailored support for employees to ensure they can genuinely thrive in the ‘Age of Ambiguity’.

“Financial confidence can have a tremendous impact on mental health and personality type has a huge influence on behaviour and mindset too. Greater support is vital for employees to thrive in an increasingly ambiguous financial environment. We believe there is a crucial role that employers can play in facilitating this. One which introduces a new dimension of personality type.”